What expense category is a computer purchase for a software company?

There are a few possible expense categories for a computer purchase for a software company. It could be considered a cost of goods sold (COGS) expense, since computers are necessary to produce the software. It could also be considered a general and administrative (G&A) expense, since computers are used for general business purposes such as accounting, marketing, and human resources. Finally, it could be considered a research and development (R&D) expense, since computers are used to develop new software products.

The most appropriate expense category for a computer purchase for a software company depends on the specific circumstances of the purchase. If the computers are being purchased specifically for use in developing new software products, then the R&D expense category is most appropriate. If the computers are being purchased for general business purposes, then the G&A expense category is most appropriate. If the computers are being purchased specifically for use in producing software that will be sold, then the COGS expense category is most appropriate.

It is important to consult with your accountant or financial advisor to determine the most appropriate expense category for your computer purchase, as this can have a significant impact on your company's financial statements.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

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